Colorado’s Marijuana Sales, Tax Revenue Slump Amid Hemp Competition
Colorado’s cannabis industry is facing a steep decline in sales and tax revenue, falling to levels below 2018 figures. Tax collections from marijuana sales peaked at $424 million during the 2020-21 fiscal year but plummeted 41% to $248 million in 2023-24.
Hemp THC Sales Bypass Cannabis Regulations
This downturn, detailed in a recent article in The Colorado Sun, is attributed to increased market competition, falling wholesale cannabis prices, and the rise of so-called intoxicating hemp products. These psychoactive hemp-derived products, such as delta-8 THC, mimic the effects of delta-9 THC but are less potent and have gained widespread popularity.
Since the legalization of hemp in 2018 under the federal Farm Bill, a $2.2 billion quasi-legal market for hemp-derived THC products has emerged. These products, including THC-infused seltzers, gummies, and brownies, often bypass the regulatory …